Talks between Air Malta and workers’ unions are reportedly making significant progress with preliminary deals already struck with three of them, the Times of Malta is informed.
Negotiations with the Union of Cabin Crew, the Airline Engineers’ Association and the General Workers’ Union were moving ahead but the same could not be said for the Airline Pilots’ Association – ALPA – which was still not satisfied with what was on the table, civil aviation industry sources said.
The sources said it was rather “unorthodox”, that, Air Malta management and government officials were calling pilots individually to discuss what was on offer directly with them.
Air Malta sources said the deal with engineers and cabin crew were “practically wrapped up” and what remained was the formal green light by the unions.
The agreement with cabin crew introduced “a complete shift in the way they used to work even though the monetary offer made by the airline is generous”, the sources added.
They said the deal entailed “very generous” early voluntary retirement schemes that included a one-time payment of between €100,000 and €200,000 depending on the years of service.
The airline wants to cut the number of cabin crew by about 60 to below 200.
Under the deal, cabin crew members also agreed to forfeit about four ‘off-days’ a year and reduce the cabin crew complement on each flight by one. In exchange, cabin crew have been guaranteed a take-home pay similar to the best year they had over the last four years, the sources said.
The new conditions offered to engineers, including a reduction in the number of shifts while increasing productivity, the sources added.
According to the Air Malta sources the remaining “stumbling block” were the pilots whose union still demanded better offers.
The airline wants pilots, who receive over €100,000 a year in total, to agree to fly longer hours and to have fewer captains and first officers.
Sources close to ALPA said pilots remained open to negotiations and, though accepting to work more hours, were still negotiating the final remuneration package. As to the complement, pilots were arguing that more not fewer would be needed if the airline were to grow.
A positive conclusion to the negotiations with the airline staff was deemed crucial by the government if there were to be another attempt to turn around the national airline, the industry sources noted.
Tourism Minister Konrad Mizzi, who became responsible for Air Malta after the June general election, opted to change strategy, moving away from limiting the company’s operations while entering in discussions over the sale of a minority shareholding to the ailing Alitalia and, instead, embarking on efforts to expand and consolidate the national airline and then looking for a strategic partner, the sources said.
The airline sources said that though, initially, Dr Mizzi’s threat that Air Malta could be closed down if unions did not agree to his plans was not well received, the unions now appreciated that the minister and the board had a new vision that might be “the last hope for the airline company”.
“From the doom and gloom attitude of the previous minister [Edward Zammit Lewis] we now have some hope,” a senior Air Malta official said yesterday.